CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

EUR/USD, GBP/USD and AUD/USD looking at risk over short term

EUR/USD, GBP/USD and AUD/USD all shows signs of potential short-term weakness. However, will we see the bullish emphasis return before long?

EUR/USD heads lower after brief pause

EUR/USD is heading lower once again this morning, with the pair trading at the 61.8% retracement following a break below $1275.

That move below the prior swing low points towards further downside to come, with the 76.4% retracement level coming into view ($1.1236). The wider uptrend remains in play until we see a break below $1.1181. While further downside looks likely for the near term, there is still a good chance that the bulls will come back into play before long.

GBP/USD declines into Fibonacci support ahead of services PMI

GBP/USD has been under pressure this week, following a sharp decline in the construction and manufacturing purchasing managers index (PMI) surveys.

Today is the big one, with the services PMI figure expected to have a material impact on sterling this morning. The technical picture still remains somewhat optimistic for now, with the prior break through $1.2763 seemingly paving the way for a bullish phase to take shape. A break below $1.2506 would negate that bullish signal, yet it will be interesting to see how we react to this 76.4% Fibonacci retracement area. The low of the day also tallies up with the late-May low of $1.2559. As such, a break below this area of support would point towards a potential move into and below the $1.2506 lows. However, with the services PMI impending, watch out for how the pair reacts to this support zone.

AUD/USD rally looking at risk

AUD/USD has been climbing off the back of a sharp decline on Monday, with a record trade surplus figure overnight helping that recovery.

However, coming off the back of a substantial bout of upside at the back end of June, it looks likely that we will soon see this market continue lower once again. A rally through $0.7031 would negate such an idea, yet the current rally into the 61.8% looks likely to falter once more for a deeper retracement to come into play.

This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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